Top Stocks to Buy in January: Expert Insights
As the S&P 500 continues to soar, investors are wondering how much longer the bull market rally will last. With the broader market becoming increasingly expensive, it’s crucial to invest in top companies that can weather periods of volatility. Here’s why five experts have high conviction in Alphabet, Micron Technology, Brookfield Renewable, PepsiCo, and United Parcel Service as top stocks to buy this month.
Alphabet: The AI Pioneer
Keith Speights believes Alphabet will be a clear winner in the rise of artificial intelligence (AI) agents. With its robust AI agent functionality, Alphabet’s ecosystem presents a massive opportunity for deploying AI agents across its product range, including Android, Google Pixel phones, and Google Workspace productivity suite. Trading at only 21.3 times forward earnings, Alphabet is the biggest bargain among the “Magnificent Seven” stocks.
Micron Technology: Building an American Tech Titan
Anders Bylund loves companies with a long-term vision, and Micron Technology is a prime example. The memory chip maker is building an America-centered manufacturing network, expecting to invest $50 billion in new and upgraded facilities by 2030. With its world-class memory chips used in AI accelerators from Nvidia and Advanced Micro Devices, Micron’s long-term business prospects are incredible. Trading at a bargain-bin valuation of 3.3 times sales or 7.6 times forward earnings, Micron is a steal.
Brookfield Renewable: A Solid Chance to Recover
Neha Chamaria believes Brookfield Renewable has a solid chance to recover and rally in 2025. Despite underperforming the S&P 500 in 2024, the company’s operational performance and growth goals remain strong. With a massive growth potential, Brookfield Renewable is steadily growing its cash flows and dividends, making it a solid stock to buy and hold for 2025 and beyond.
PepsiCo: A Cash- and Profit-Generating Machine
Demitri Kalogeropoulos thinks PepsiCo fits perfectly as one of the first purchases of 2025. Despite underperforming the S&P 500 in 2024, Pepsi is still a cash- and profit-generating machine. With a solid earnings generation and an unusually high payout, Pepsi’s dividend yield is back above 3.5%, making it an attractive option for investors.
United Parcel Service: An Incredible Opportunity
Daniel Foelber believes UPS is an incredible opportunity for patient investors. Despite struggling with declining margins and expensive negotiations with the Teamsters Union, UPS has already made significant investments in expanding routes and is well-positioned to return to growth in 2025. With a high yield of 5.3% and opportunities to expand its healthcare and small and medium-sized delivery volumes, UPS is a compelling transportation stock for passive-income investors.
These five top stocks offer a unique combination of growth potential, dividend yields, and long-term vision, making them an attractive addition to any portfolio.
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